On March 1, Eckert and Kelley formed a partnership. Eckert contributed $75,000 cash, and Kelley contributed land valued at $60,000 and a building valued at $90,000. The partnership also took Kelleys $65,000 long-term note payable associated with the land and building. The partners agreed to share income as follows: Eckert gets an annual salary allowance of $30,000, both get an annual interest allowance of 9% of their initial capital investment, and any remaining income or loss is shared equally. On October 20, Eckert withdrew $31,000 cash and Kelley withdrew $24,000 cash. First year income was $81,000. Required: 1a. & 1b. Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. 1c. Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partners' withdrawals accounts. 2. Determine the balances of the partners capital accounts as of December 31.

Req 1A and 1B Req 1c Req 2 Prepare journal entries to record the partners' initial capital investments and their subsequent cash withdrawals. View transaction list View journal entry worksheet x No Date General Journal Debit Credit 1 March 01 Cash 75,000 60,000 Land 90,000 65,000 Building Long-term note payable Eckert, Capital Kelley, Capital 75,000 85,000 Req 1A and 1B Req 1C > Req 1A and 1B Req 1c Req 2 Determine the partners' shares of income, and then prepare journal entries to close Income Summary and the partn withdrawals accounts. (Enter all allowances as positive values. Enter losses as negative values.) Allocation of Partnership Income Eckert Kelley $ 30,000 $ 0 Total $ 81,000 30,000 51,000 6,750 6,750 Net Income Salary allowances Balance of income Interest allowances Balance of income Balance allocated equally Balance of income Shares of the partners 0 $ 0 $ 36,750 $ 0 Debit Credit Date General Journal Record the entry to close the partners' withdrawals accounts. Dec 31 Record the entry to close the income summary account. Dec 31 DocandLR Doc Req 1A and 1B Req 1C Req 2 Determine the balances of the partners' capital accounts as of December 31. Eckert Capital Account Balances Initial investment $ 75,000 Kelley 60,000 24,000 Withdrawals 31,000 Share of income Ending balances $ 44,000 $ 36,000